09 Feb The trustee/director succession problem: How schemes can build long‑term leadership stability

Posted at 11:16h in Property by

Trustees and directors play a crucial role in the smooth running of a sectional title scheme or HOA. But many communities struggle with the same issue year after year: Finding willing, capable trustees/directors who stay long enough to make a real impact. Trustee/director turnover can lead to poor decision‑making, inconsistent management, and unnecessary conflict.

Below are practical ways to build leadership stability in your scheme.

Why trustee/director succession matters

Trustees and directors are responsible for financial oversight, maintenance planning, rule enforcement, and compliance with the Sectional Titles Schemes Management Act (STSMA).

When trustees/directors change too often, important knowledge is lost and long‑term projects stall. This affects levy stability, maintenance quality, and even property values.

Create a simple onboarding process

Most owners avoid becoming trustees or directors because they feel unprepared. A short onboarding pack can make a significant difference. Included in this pack should be:

  • A summary of trustee/director duties (STSMA: PMR 6–9 for trustees) and (Companies Act for directors)
  • The latest budget and financial statements
  • The 10‑year maintenance plan
  • Key service provider contracts
  • A contact list for the managing agent and trustees/directors

This helps new trustees/directors feel confident from day one.

Encourage mentorship between trustees/directors

Pairing experienced trustees and directors with new ones creates continuity. It also reduces the pressure on long‑standing trustees/directors who often carry the bulk of the work.

 Communicate clearly with owners

Owners are more likely to volunteer when they understand what trustees/directors actually do. Use newsletters, WhatsApp groups, or AGM presentations to explain the role in simple terms. Highlight that trustees and directors are protected from personal liability when acting in good faith under the STSMA and Companies Act.

Plan for trustee changes

Instead of scrambling at the AGM, identify potential trustees/directors throughout the year. Encourage owners with financial, legal, or technical skills to consider joining. Even better, create a trustee and directors’ pipeline – a list of owners willing to step in when needed.

Concluding thoughts

Trustee/directors succession does not happen by accident. With a bit of planning and communication, your scheme can build a stable, confident leadership team that supports long‑term growth and compliance.

 

REQUEST A MANAGEMENT QUOTE  for us to manage your community scheme today.

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